Microsoft Power Point - FY 2013 Budget Update and Discussion

8/2/2019 Microsoft Power Point - FY 2013 Budget Update and Discussion

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Fiscal Year 2013 BudgetUpdate and Discussion

March 6, 2012

Budget and Internal Audit/Finance


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Actions Since

February 7th Study Session

February 17 Operating and capital budget requests submitted to the Budget

Office by departments; all submittals were within allocations

February 24-March 2 City Manager/executive management review meetings with

department heads to review line-items, discuss resource needs,

and make adjustments as necessary

Late February/early March Further refinements of revenues and expenditures and

development of Managers proposal by executive management

March 5 Fiscal Year 2013 Budget Memo from City Manager to Mayor

and Council; meetings with Executive Leadership Team andLabor Council


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Cautious RecoveryStabilization of City financially after several

difficult budget years with an emphasis ontargeting critical needs vs. wants and further

service restoration and recovery.


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Cautious Recovery

The following slides include Fiscal Year 2013

Budget Objectives and steps being taken, as well

as the proposed funding sources included in thecurrent budget proposal, which will further

Mayor and Councils policy goals and service

objectives.

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Cautious Recovery

Incremental Restoration in Core Services:

Public Safety:

fire fighter recruit class (grant funds)

redeployment of one police motor patrol squad on streets in April 2012

Parks and Recreation:

pool openings (one-time funds from City and community donations)

safety (electrical)/security needs (one-time savings)

Roadways/Infrastructure Improvements:

restoration of median island landscaping, irrigation of all collector

medians and roadsides, guardrail repair, and traffic signal copper

wiring and road striping (Highway User Revenue Funds)

residential street paving and graffiti clean-up (deferral of transit van

replacements and transit fare adjustments recommended by transit task

force)


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Cautious RecoveryAddress Critical Infrastructure Needs Affecting Safety

and Security:

Pima County Wireless Integrated Network (PCWIN) back-upfacility at Price Service Center to improve communication

capabilities for 911, fire, and police service operations (Pima

County bonds and public safety impact fees)

Replacement bleachers for Tucson Convention Center (one-time

savings)

Hazards and security including electrical upgrades at parks

facilities (one-time savings)

Replacement of 1998-era election equipment and software to

track, process and tabulate ballots (one-time savings)

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Cautious RecoveryInvest in Employees and Customer Service:Acknowledgement of employee sacrifices in past budget years

(e.g., furloughs, medical and pension increases) as well as

increased workloads due to significant staffing cuts

Recommending no cuts to employee pay or benefits; the 5%

increase to medical insurance premium costs will be borne by

both the City and the employee as in FY 2012Recommending a 1% cost of living adjustment (COLA) for all

employees to be funded by holding vacant positions into FY

2013; critical front-line (e.g. Water customer service) and

revenue generating positions would be filled first

Redirect resources to focus on training and employee

development to enhance our service delivery methods and

abilities 8


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Cautious RecoveryEnhance Service Delivery:Opportunity to re-think how we do things in order to improve

services; we cannot afford to do otherwise

Recommend a) hiring of 1 additional Finance staff toconcentrate on delinquent account collections, and b) funding

travel costs for out-of-state tax audits at national retailer

headquarters to potentially recover more revenue due to City.

Outsource finance investment management in order to improve

security and maximize returns; will result in elimination of 1

authorized position in Finance

Contract some IT services where it can provide greaterefficiencies

Pursue creative and private funding opportunities to enhance

services (e.g., Bring Back the Splash, Hi Corbett/UA partnership)9


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Cautious Recovery

Enhance Service Delivery (continued):

Reinvigorate Citys volunteer program to make use of citizens

interest and willingness to contributeMaintain funding for outside contracted services (e.g., animal

care, jailboard) and payments to non-profit organizations (e.g.,

arts, human services/development grants, economic development

grants)

In-source some funding that in past has gone to outside

providers to enhance service delivery in economic development,

Tucson-Mexico trade, and intergovernmental relationsReorganize/consolidate in areas where we can enhance service

levels without additional resources (e.g., communications)

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One-Time Uses for Debt Service SavingsPayoff of a COPs debt issuance paid for by the General

Fund for TCC lease payments will reduce debt service

costs that will enable us to fund $2.4M in one-time needs: Open and staff 2 additional summer pools - $80,000

Replace TCC bleachers - $800,000

Purchase election equipment - $685,000 Provide for safety and security infrastructure in parks and

recreation facilities (e.g. electrical) - $500,000

Provide for narrow-band infrastructure needs for non-PCWIN

functions Cost to be determined

Provide potential contingency fund for rising fuel costs; will

consider set aside from FY 2012 fund balance

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Mass Transit System Transfer$45.9 million originally projected transfer for FY

2013 which is an increase of $6.4M over projected

$39.5M transfer in FY 2012

Recommended Reductions resulting in a $40.2M level:

$3.8 million savings by revising replacement plan for SunVansto every 5 years instead of 4 years (will result in 15% increase to

projected mileage prior to replacement); 42 vans would have

been replaced in FY 2013 under original timetable

$1.9 million increased fare revenues as recommended by Transit

Task Force ($0.25 increase to one-way full and express fares;

$0.50 increase to the day pass; and $0.35 increase to the economy

fare) 12


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Revenue Capacity

Included in Proposed Budget

3% sales tax increase over FY 2011 actuals

$9M increase in state-shared income tax

$1M alarm fee revenue

Revised departmental projections of charges for

services, fees, fines, etc.

Suspension of $1.4M administrative charge to HURFin order to avoid deficit fund situation

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Expenditure Capacity

Included in Proposed Budget

Zoo expansion (Expedition Tanzania) and Hi Corbett

operating and maintenance costs (funded respectively from

increased admission fees and UA lease payments)

Support for critical IT core network equipment, hardware

upgrades/replacements for public safety and other enterprise

systems Lower levels of federal funding (e.g., CDBG and HOME);

Housing and Community Development staff are making

adjustments to continue provision of services at or near current

levels

Operating transfer of $3.6M to Tucson Convention Center

which includes $460,000 in transient occupancy tax funds

same as FY 2012 14


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$15 Million budget gap remainingAFTER inclusion of all items

previously noted


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Proposed Balancing Options = $15M

Program a debt restructuring during late FY 2013 and

only do if necessary ($9.0M)

Program use of a portion of $12.7M assigned fund

balance from Fiscal Year 2011 that was set asidespecifically to help balance anticipated budget

shortfalls in FY 2012 ($4.3M); remaining can be set

aside for contingencies such as fuel.

Suspend surcharge on workers compensation

charged to departments ($1.7M)


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Unresolved Future Issues

Balanced budget with issues which will continue to

impact future year budgets due to imbalance caused by

expenditures being greater than revenues: Rising employee benefit costs (medical and pension)

Continued use of one-time resources

Deficit funds (e.g. HURF, golf, self-insurance) Unfunded needs (e.g., employee merit increases; deferred

roads, equipment, vehicles, and technology investments)

Fiscal Year 2015 budget (e.g., funding grant-funded police

officers and firefighters, streetcar operating andmaintenance, PCWIN and Joint County Courthouse

operating costs, potential State actions due to expiration of

temporary sales tax in May 2014)


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Long-Term Strategies General Bond Obligation Election

To fund unmet capital infrastructure needs

Manage unsustainable mass transit system transfer

increases;

Transit Task Force will continue to evaluate options (e.g.,

fare policy linked to CPI and/or spiking fuel costs)

Decrease accumulated net asset deficits (e.g. Self

Insurance, Golf)

Institute vehicle and equipment replacement funds

Immediately focus on resolutions for FY 2015 issues


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Requests for Mayor and Councils

Input and Direction

January

Chief Financial Officer and Budget Director heldindividual meetings with Mayor and Council and staff

February 7 Preliminary budget update at Study Session and request for

council questions; staff responses have been provided aspart of todays agenda material

Now Staff will proceed to compile the recommended budget

document (April 24) based upon this information andincorporate any direction provided today by Mayor andCouncil


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Fiscal Year 2013 Budget Calendar

April 24

City Managers Recommended Budget to Mayor andCouncil

May 8

Study Session discussion of Recommended Budget Public Hearing

May 15 Mayor and Council Study Session discussion

Regular agenda adoption of tentative budget (i.e. ceiling)


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Fiscal Year 2013 Budget Calendar

June 5

Public hearing (truth in taxation) on primary property taxrate

Public hearing on budget as tentatively adopted

Special meeting to adopt final budget

June 19

Regular agenda adoption of FY 2013 property tax levies

Microsoft Power Point - FY 2013 Budget Update and Discussion

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